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Should You Refinance to Buy Another Property in Ontario? (2025 Investor Guide)

Should You Refinance to Buy Another Property in Ontario? (2025 Investor Guide)

By Sol Yasin | Mortgage Agent Level 1
Kingsdale Mortgage Centre Inc. | FSRA License #13585
Call or Text: 647-207-0470

🎯 Thinking About Buying Another Property?

Strapped for cash but sitting on equity? Refinancing an existing property could unlock the capital you need — but in 2025’s market, it’s not always the right move.

In this guide, we’ll explore when it makes sense to refinance to buy another property in Ontario, and when it might backfire. I’ll also share real investor case studies to help you decide.

🧠 Why Investors Refinance to Buy Another Property

Refinancing allows you to:

  • Unlock equity based on a new appraisal

  • Leverage gains instead of letting equity sit idle

  • Scale your portfolio faster than saving a new down payment

📌 Example: A client bought a townhouse in Kitchener for $520K in 2020. It’s now worth $700K. We refinanced to $560K, paid off the $390K balance, and used the extra $170K as a down payment on a triplex in Welland.

✅ Pros and ⚠️ Cons of This Strategy

✔️ Pros:

  • Tax-free access to equity

  • Accelerated portfolio growth

  • Potential to improve cash flow with better terms

⚠️ Cons:

  • Higher debt load

  • Possible increase in monthly payments

  • You’ll need to pass the current stress test

  • Risk of low appraisal value

Always run a full mortgage analysis to ensure the numbers work before you proceed.

📈 Is This Strategy Viable in 2025?

Yes — but only for those who are prepared.

You’ll need to:

  • Pass the stress test (2% above contract rate)

  • Have strong credit and provable income

  • Ensure the new property’s rental income supports itself

📌 Real Example: A couple in Mississauga refinanced their detached home, pulled $200K, and aimed to buy a $900K duplex in Barrie. They passed the stress test but fell short on income. We pivoted to a joint venture with a capital partner who co-qualified — and closed the deal.

🛠️ Smart Ways to Refinance for a New Purchase

Here are investor-tested strategies:

  • HELOCs: Access capital without resetting your full mortgage

  • Blended Mortgages: Add funds without breaking your current rate

  • Equity Take-Out + B Lender: Refi with an A lender, buy with a B lender

  • Refi + JV Strategy: Combine equity with a partner who can qualify

Each method has trade-offs — structure depends on your goals, credit, and income.

📞 Ready to Build a Refinance Strategy?


Thinking about refinancing to buy another investment property in Ontario? Let’s run the numbers together.

🔗 Book a free strategy call
🌐 Apply online
📞 Call or text: 647-207-0470

📍 Based in Ontario — helping investors across the province